Ottawa:The federal government is expected to announce its national automotive strategy on Thursday, which will scrap Canada’s electric vehicle (EV) sales mandate and replace it with a system of fuel efficiency standards and credits, CBC News has learned.
Sources say the plan will also revive popular incentives for consumers buying EVs and include funding to expand the country’s EV charging infrastructure.
Prime Minister Mark Carney has faced pressure from automakers, provinces, and opposition parties to eliminate the incremental sales targets requiring 60% of new vehicles to be electric by 2030 and 100% by 2035. In September, Carney paused the 2026 targets and launched a 60-day review of the EV mandate, citing challenges from U.S. tariffs.
Industry consultations on tailpipe emission rules—which regulate pollution from cars and trucks—suggest the government is moving toward a system similar to the European Union’s, which replaced EV sales targets with fuel efficiency standards last year.
